Managing the Risks of AS/RS

A Word from our President...

Dan Labell, President

When I travel, I meet people from all sorts of backgrounds.   When we talk about warehouse automation, I find that the majority of them are quite skeptical about the technology.   The first question typically posed is, “What happens when it breaks?” or “How will I be able to afford this?”   To those who are skeptical about AS/RS, read on.

Simply put, automated warehousing is one of the only remaining areas that can significantly reduce long-term costs.   So why don’t more companies take advantage of warehouse automation? The answer often comes down to initial cost rather than genuine, long-term value. There is a golden rule in automation that I have become firmly convinced of over the years:

Purchasing low-cost, low-quality warehouse automation machinery is often more expensive than staying with a manual system.

The bottom line is this: if you are going to do it, you need to do it right.   There is no middle ground here.   Those companies that have had serious problems with their low-cost, low-quality project give fuel to skeptics who say the technology is risky and may fail.

There are a few simple rules to investing in warehouse automation:

Buy only the highest quality equipment.

Don’t think that the best deal will provide the lowest cost to your firm. The down-time associated with problems from lower quality equipment is too expensive and will quickly erode the initial cost savings.

Think long-term.

Every successful business has a vision that requires small, steady steps to reach goals that are realistic and profitable.   Because an AS/RS has a 20+ year life, don’t expect a 12-month payback.

 

Introduce operating personnel early.

Include operating personnel early in the process and make them a part of the project team before the system goes on-line.

Think proactively.

Preventive maintenance is far less expensive than reactive repair. Talk to the experts who design and maintain the equipment and take necessary action.

Don’t buy from companies that cannot demonstrate

their successful expertise in environments similar to your project requirements.

These rules sound basic and simple.   All too often, however, one or more are not applied, which results in unrealistic expectations and frustration.   At Westfalia, we avoid this by sticking to the fundamentals, staying within our core competencies, and making sure that we can fully identify with the customer’s problem domain.

We look forward to working with you!
- Dan Labell, President -

Contact Westfalia Technologies, Inc. via email or call 800-673-2522 or 717-764-1115.

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